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Saturday, February 10, 2018

SAILing through the path to profit

MAHARANA PSU Steel Authority of India (SAIL) posted a net profit of Rs 43.16 crore in the third quarter of the current financial year against a loss of Rs 794.84 crore in Q3FY17.
The steelmaker's turnover went up 21 per cent to Rs 15,443 crore in Q3FY18 against Rs 12,688 crore in Q3FY17. SAIL posted a profit before tax (PBT) of Rs 82 crore in the third quarter of the current financial year (Q3FY18) after a gap of ten quarters.
SAIL registered EBITDA of Rs 1,571 crore during the quarter under review as against Rs 35 crore during Q3FY17. EBITDA per tonne of steel for the... quarter at Rs 4,162 was significantly higher than Rs 107 in Q3FY17. On a sequential basis, it grew more than 50 per cent over the Q2FY18.
"This marks an evident step in the turnaround of the company which continually thwarted challenges and has steadily moved forward towards profitability," it said in a statement.
During the nine-month period April-December 2017, SAIL achieved a net turnover of Rs 40,091 crore, which is a growth of 28 per cent over same period last year. The company's total saleable steel sales volume of 3.77 million tonne (mt) in Q3FY18 rose 15 per cent over last year, while showing a 7 per cent growth in nine month period in April-Dec 2017 over same period last year. In April-Dec 2017 SAIL achieved highest ever saleable steel production of 10.46 mt. SAIL also successfully reduced its manpower cost per tonne of steel by 10 per cent during April-Dec 2017 over same period last year.
SAIL is targeting higher sales volume coupled with more value added products by ramping up production from its new mills. The company's strategic planning on production and marketing front, including newer domestic and potential export destinations, has helped SAIL achieve the strong result and start its journey of returning to profits.
"SAIL's third quarter result of FY18 is an amalgamation of higher production, improving efficiencies, focused marketing, cost control initiatives, a massive two way company-wide communication exercise, SAIL chairman P K Singh said. It is also a collective effort with active participation of our employees to get back to profits, he added.
Stressing on SAIL's modernization he said: "As we enter into the sixtieth year of production in February, 2018, we have almost completed our balance modernization projects resulting into further capacity addition. With stabilization of downstream facilities also converging simultaneously, we are in a position to offer an array of value added products to the market."
Steel Authority of India Limited is the largest steel-making PSU in India. SAIL produces iron and steel at five integrated plants and three special steel plants, located principally in the eastern and central regions of India and situated close to domestic sources of raw materials. SAIL manufactures and sells a broad range of steel products. The government of India currently owns about 75 percent of SAIL's equity and retains voting control of the PSU.